The Fed Just Said Market Participants Were Right About Rates

June 15, 2016 6:18 PM

30 0

The Fed Just Said Market Participants Were Right About Rates

But the market is still challenging the Fed. The dot plot from the March meeting showed that Fed officials on average expect the overnight rate to be 1.9% at the end of 2017 and 3.0 at the end of 2018. In the most recent surveys, the median forecast of primary dealers and market participants was for a rate of 1.63% at the end of 2017. Primary dealers foresee 2.65% at the end of 2018, while the broader group foresees 2.44%.

In materials released by the Fed with its interest-rate announcement today, the Fed pushed down its estimate of rates in the future to 1.6% in 2017 and 2.4% in 2018. Which means the Fed has adopted the view market participants had taken in its April survey.

Also read: Solid Job Growth Strengthens Prospect for a Fed Rate Increase

Read more

To category page

Loading...